IMF warns tokenized finance could amplify future market crises

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Published: 5 hours ago

The International Monetary Fund issued warnings that tokenized finance systems could worsen market volatility during financial crises. The IMF highlighted risks from increased interconnectedness and potential for rapid contagion across digital asset markets. Major reserve currencies like USD, EUR, and JPY could face increased volatility if tokenized finance disrupts traditional banking systems. Traders should monitor central bank digital currency developments and regulatory responses that could impact safe-haven flows.

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